CEO appointed & controlled by Pump/dumpers recently resignedPer current BCSEC case document exerpt below.....All you have to know about Reliq and the continually pumping recently resigned CEO due to suspect health issues.....and continuies to be an advisor to her now appoined replacemen and witness to all the alleged fraud. F/S haulted and poor management and suspect buisiness continues. Odds are this stock with be bankrupt soon. IMO
Per current case currently before he BCSEC...
The Respondents’ undisclosed control
12. Starting in July 2015, the individual Respondents:
• replaced Reliq's board of directors and CEO with nominees under their control;
• appointed A. Thindal as Reliq’s CFO, director and a bank signatory; and
• accumulated a large share position in Reliq personally, as well as through the accounts of their relatives, corporations and nominees.
13. As of September 5, 2017, the Respondents personally, as well as through the accounts of their relatives, corporations and nominees, held approximately 25% of Reliq’s 68,435,706 free-trading issued and outstanding shares. Promotional Activities 14. Between August 1, 2017 and October 31, 2018 (Reliq promotional period):
a) the Respondents caused Reliq to: i. issue misleading news releases; 3 ii. issue misleading investor presentations; and iii. pay for misleading promotional campaigns that they arranged;
b) the Respondents also paid for some of the misleading promotional campaigns with their own funds; and
c) Al Homsi issued highly promotional tweets about Reliq using the Twitter account @MakingMoneyNow1.
15. Core Capital assisted Reliq with fundraising through private placements during the Reliq promotional period. The promotional campaigns referred to the private placements as evidence of strong demand for Reliq’s shares. Misleading news releases
16. Between October 2017 and January 2018, Reliq issued news releases announcing increases to the number of paid subscribers with Texas healthcare entities using its patient monitoring platform and the associated recurring monthly revenue as follows: Date of announcement Number of paid subscribers Recurring monthly revenue (USD) October 5, 2017 1,000 $50,000 November 16, 2017 2,000 $100,000 November 30, 2017 4,000 $200,000 January 11, 2018 6,000 $300,000
17. These news releases were misleading because they overstated the amount of recurring monthly revenue due to revenue that was either not collectable, or not collectable in a timely way.
18. On January 11, 2018, Reliq issued a news release announcing that it had “achieved profitability” as of December 2017. This news release was false and misleading as Reliq had not achieved profitability as of that date. In fact, Reliq would never achieve profitability during the Reliq promotional period.
19. On March 29, 2018, Reliq issued a news release announcing that it now had 12,000 patients enrolled in its patient monitoring platform and that it was adding at least 2,000 new patients per month. It did so knowing that investors would equate every additional 1,000 patients enrolled with 1,000 paid subscribers and $50,000 in recurring monthly revenue ($50 per patient/month). That made the news release misleading because it overstated the amount of recurring monthly revenue due to revenue that was either not collectable, or not collectable in a timely way. 4
20. Reliq issued similarly misleading news releases on April 5, 2018 announcing 5,000 new patients, and on June 13, 2018 announcing up to 5,000 additional patients.
21. On October 16, 2018, Reliq issued a news release admitting that it planned to restate its financial statements for the quarter ended March 31, 2018, due to the timing and certainty of receiving revenue invoiced to clients being “substantially unclear”.
22. Reliq reported about $2 million in revenue from its patient monitoring platform during the Reliq Promotional Period. In fact, it only collected $51,540 or about 2.6% of that amount. Misleading investor presentations
23. The investor presentations were misleading as they repeated the misleading aspects of the news releases. They also described the educational credentials and business experience of Reliq’s registered officers and directors in promotional terms without disclosing the Respondents’ secret control of the company. Misleading promotional campaigns
24. Reliq was the subject of paid promotional campaigns, arranged for by some of the Respondents. The promotional campaigns touted the company in advertorials on various websites, in promotional posts, newsletters, reports and in email blasts. The promotional campaigns repeated the claims in Reliq’s misleading news releases and included the following highly promotional claims about Reliq: • “One of the most attractive and undervalued investment opportunities”; • “Reliq has been executing flawlessly…”; • “A best-in-class opportunity”; and • “This healthcare technology company is quickly becoming a free cashflow machine.”
25. The Reliq promotional campaigns were also misleading as they did not inform investors that Reliq was overstating its revenue, was not profitable and was secretly controlled by the Respondents. Misleading Tweets
26. Al Homsi promoted Reliq in hundreds of tweets on his Twitter account, @MakingMoneyNow1. His tweets repeated claims from the misleading news releases and the misleading promotional campaigns, and also made highly promotional statements including: • Reliq was “officially a 20 bagger and counting”; • ”I really believe @ReliqHealth will be that billon dollar company that people will talk about years to come”; and 5 • “This stock isn’t even real life lol. #Beast $RHT.TO”.
27. These tweets were misleading as they failed to include the true financial circumstances of Reliq and that Reliq was secretly controlled by the Respondents, including Al Homsi. Increase in share price and trading volume during Reliq promotional period
28. In the month before the Reliq promotional period, Reliq’s shares were thinlytraded. On July 31, 2017, Reliq’s share price closed at $0.105.
29. The misleading news releases, investor presentations, promotional campaigns and tweets, and Reliq’s fundraising activities, resulted in or contributed to an increase of Reliq’s share price during the Reliq promotional period. On February 12, 2018, Reliq’s share price closed above $2.00 for the first time.
30. Reliq’s share price reached a high of $2.62 on March 1, 2018. This represented an increase in share price of about 2,000% since the start of the Reliq promotional period and gave Reliq a market capitalization of approximately $270 million despite being an unprofitable company.
31. During the Reliq promotional period, 518,180,016 Reliq shares traded. The year before the Reliq promotional period, 104,433,052 Reliq shares traded.
32. After the Reliq Promotional Period ended, Reliq’s share priced dropped rapidly, closing at $0.355 by the end of 2018. The Respondents’ sold their Reliq shares
33. The Respondents dumped approximately 23 million Reliq shares throughout the Reliq promotional period for net proceeds of approximately $20 million, as follows: a) K. Thindal sold over 7.6 million shares for net proceeds of over $7.7 million; b) Al Homsi sold over 8.1 million shares for net proceeds of over $7.7 million; c) Luddu sold almost 1.9 million shares for net proceeds of over $810,000; and d) Kumar sold over 5.5 million shares for net proceeds of over $3.2 million